Apple introduces MacBook Neo - entry into the mid-range PC market

Apple has introduced the MacBook Neo, a more affordable addition to its laptop lineup, starting at 515 euros ($599), as it seeks to expand its presence in the price-sensitive computer market at a time when competitors face increasing supply problems with memory chips.

The lower-priced laptop represents one of Apple's most aggressive forays into the PC segment in recent years. The new MacBook is powered by the A18 Pro chip, the same processor that debuted in the 2024 iPhone 16 Pro models, Reuters reports.

At €515, the device is significantly cheaper - both nominally and when adjusted for inflation - than Apple's previous MacBook that was neither a Pro nor an Air, which was introduced in May 2006 at a price of $1.099, which would be around $1.750 (€1506) today.

Customers can pre-order the device starting today, while shipments and availability in stores will begin on March 11, Apple said.

"The real question is not whether Apple can sell the MacBook at this price (because if they can deliver, it will likely be one of the best-selling Macs ever), but how they will balance cost, performance and brand positioning, while preserving the premium experience that defines the Mac," said Francisco Heronimo, vice president of client devices at IDC.

This isn't the first time Apple has targeted the lower price range. The company previously made a special €600 ($699) MacBook Air for Walmart, using the M1 chip that was originally introduced in 2020, after other models with that chip were discontinued.

The new MacBook is clearly aimed at users of Google-based Chromebooks and lower-end Windows devices, where Microsoft's efforts to switch to Arm chips, which are supposed to provide better battery life, have not led to significant sales growth.

Entering the mid-range segment of the PC market could help Apple expand its user base among students and first-time laptop buyers.

Amid a global shortage of memory chips, the new MacBook comes with 8GB of unified memory, which is half the 16GB in the M4-based MacBook, and less than the 12GB in the iPhone 17 Pro, Reuters reports.

Global PC and smartphone markets remain highly price-sensitive after several quarters of uneven demand, while hardware makers continue to grapple with fluctuating component costs, particularly memory chips.

Apple this week also launched the €515 ($599) iPhone 17e with more storage and refreshed its MacBook Air and MacBook Pro lines with new M5 chips and standard configurations with more memory, seeking to defend market share in a competitive phone segment and a PC market that is weakening under pressure from rising memory prices.